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Your Lease’s Dirty Secrets

September 27, 2019 by Paul Begich

Leases are my jam! Yes, my team and I work with buyers and sellers within the condo and loft market here in Downtown Minneapolis. But, on a daily basis, my personal residential real estate focus is all things related to leasing, which means a boatload of legally binding leases.

Leases are long! And quite frankly, they’re quite boring and tough to read.

But before signing a lease, it’s imperative you READ the entirety of the document. If you’re someone with a short attention span, make sure you read at least these two pieces:

1.) Termination Clause

Each lease will include a section dedicated to terminating the lease prior to the conclusion of the actual lease term. This information can significantly impact your obligation to the property. Most commonly, apartments will require a 60-day notice PLUS a cancellation or termination fee of two months’ worth of rent. Some properties will also require continued rent payment until the property has been re-rented.

I get it: life happens! A job transfer could be right around the corner. But knowing this section of your lease can help you make better decisions when these life- challenging events happen.

2.) Renewal Policy

This section can be a bit confusing. The way MOST leases are structured is “This lease will auto-renew at the end of the lease term on a month to month basis if neither party has given 60-day notice prior to the last day of the month.” Meaning, if your lease ends June 30, 2020 THEN you need to give notice prior to the end of April 2020—make sense? And giving “notice” is also required by both parties.

If your apartment doesn’t give you notice that rent is increasing or that they’re bringing the unit to the open market, the lease will go month to month (unless otherwise stated in the lease). I could go CRAZY in depth on this, but just be sure to look over how and when the lease will renew. The last thing you want is to be scrambling for a new place to live last minute. But if you are, that’s why I’m here. 😉

Find Your Next Minneapolis Apartment or Condo

While these areas of a lease are just two vital components that you’ll want to pay attention to, the lease in its entirety is important! Remember, when you sign a lease, you’re signing a contract and that is not to be taken lightly. But with DRG on your side, we’ll ensure you have all the information you need to feel secure and confident about your lease agreement.

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